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U.S. Tax reform ideas

By chdchan ·
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(1) Incentives to tax-payers for tax prepayment (early birds), e.g. rebate or discount coupons for shopping, or governmental bonds;
(2) Higher income cashflow by more frequent tax payment by monthly instalments for the same amount that previously paid annually;
(3) Lowering taxes for successful re-entrants to employment market to stimulate more taxation incomes;
(4) Higher taxes for monopolized or near-monopolized businesses, and globalization players that have capitalized much on industry export.

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"(3) Lowering taxes for successful re-entrants..."

by CharlieSpencer In reply to U.S. Tax reform ideas

"(3) Lowering taxes for successful re-entrants to employment market to stimulate more taxation incomes"

I don't agree with this one. It assumes the current taxes rates are a factor keeping people from seeking or accepting employment. People don't turn down jobs because it would result in them paying taxes.

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(5) Lower profit tax for corporation offering much staff salary raise

by chdchan In reply to U.S. Tax reform ideas

By lowering profit tax for corporation offering much staff salary raise, employers will be encouraged to raise salaries for staff that convert to overall higher government tax incomes. This also enhances job satisfaction, and boosts the employment market plus consumer market as well.

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LOL, this is worse than a Monty Pythons sketch

by aidemzo_adanac In reply to U.S. Tax reform ideas

This week on How to Do it!

Alan: Hello.

Noel: Hello.

Alan: Well, last week we showed you how to become a gynaecologist. And this week on 'How to do it' we're going to show you how to play the flute, how to split an atom, how to construct a box girder bridge, how to irrigate the Sahara Desert and make vast new areas of land cultivatable, but first, here's Jackie to tell you all how to rid the world of all known diseases.

Jackie: Hello, Alan.

Alan: Hello, Jackie.

Jackie: Well, first of all become a doctor and discover a marvellous cure for something, and then, when the medical profession really starts to take notice of you, you can jolly well tell them what to do and make sure they get everything right so there'll never be any diseases ever again.

Alan: Thanks, Jackie. Great idea. How to play the flute. (picking up a flute) Well here we are. You **** in this end and you wiggle your fingers up and down the other end.

Noel: Great, great, Alan. Well, next week we'll be showing you how black and white people can live together in peace and harmony, and Alan will be over in Moscow showing us how to reconcile the Russians and the Chinese. So, until next week, cheerio.

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tax reform idea for almost anywhere

by john.a.wills In reply to U.S. Tax reform ideas

Get rid of corporate income tax (I am not saying get rid of taxes with a definite relation to government benefits received): firms will then either pay higher wages or increase dividends so that personal income tax will recover what was lost from the corporate income tax in proportion not to the overall profit of the firms but to the total income of the employees and shareholders. A secondary benefit would be that when firms needed new capital they would no longer be so inclined to get it by bonds (interest on which is tax-deductible) as by issuing new equity.

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So put it on the people?

by aidemzo_adanac In reply to tax reform idea for almos ...

Sorry if this seems stupid but taxation is something I usually leave to my accountant. I'll absorb law, religion, science, mechanical engineering etc but taxes and government income loses me, maybe its the many pockets where I lose track of the money, which is also odd because I make deals and sign contracts for a living.

From what I understand, if your system is ANYTHING like ours, personal income tax is based on income level. The more you make, the more they take. Am I still right ?

I always enjoyed US income because I was taxed less than in Canada and a LOT less than UK takes too (but I think that is just the nature of the income being entertainment/royalties).

I know that if I get a raise I always look for a really fat one, otherwise it'l l be just enough to put me in the next tax bracket and I end up taking home less net pay despite a raise.

That said, if companies gave employees more, the employees would be put into a higher tax bracket and would lose out.

Is it really different in the US? I didn't think we were that far apart.

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Taxation works the same here

by AV . In reply to So put it on the people?

If you make more, they take more, but I think we have some flexibility through tax loopholes. Mostly, the rich take advantage of loopholes, but there are also some for the little folk if they have a small business and can write off expenses.

I think john.a.wills is saying that getting rid of the corporate income tax will create higher wages. I don't know if thats true, but if it was lowered, it would likely make us more competitive in the global economy.

AV

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?

by aidemzo_adanac In reply to Taxation works the same h ...

More competitive in the global economy. I assume you are referring to outsourcing and manufacturing. Bottom line, if Americans were willing to work for less, which they aren't, there would be no need for outsourcing. You need a certain income to meet the cost of living of course too.

What doesn't work though is that in order to provide your most basic needs for a consumer driven nation, you rely on world imports just to exist. America is an importer, not an exporter. Other nations rely on your cash flow, when our dollar goes up everyone is happy, "great, now everything in the States is cheaper, let's go shopping". In the process we lose billions in export money for oil, grains, fish, electricity, lumber and everything else we sell to the US. So things up here become more expensive, it drives your economy but kills ours.

Anyway, back to taxation. Getting rid of corporate income tax would save corporations billions, if you think that $3 of that would make its way into workers pockets as a raise, you surely haven't seen any American corporations in action.

Think of the government. If they saved 22 billion dollars somehow, ANYWHERE, do you think one red cent of it would be given back to the people or that taxes would be lowered? Not in a million moons.

There are so many places where tax money can be deferred to, there's no way it makes its way back to people. That's why I don't understand people whining about welfare or medical, IF that money were saved, you wouldn't benefit in any way shape or form from it, it's just spent on something else you may or may not agree with.

I have a gazillion write offs myself, but a raise is still a raise. I have the same number of write offs, no matter what I earn for doing the same job. Earning more would just mean higher taxes and less in my pocket than I already have. Cutting the company's taxes would mean they pay less in tax but they'd have the same write offs or find even more.

Doesn't help me either way, in fact unless I was given a 35% raise, I'd pretty much break even. A couple of bucks an hour here and there won't do anything but reduce my take home pay.

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maybe not higher wages

by john.a.wills In reply to ?

but then surely higher dividends, also taxable as personal income. I did write "total income of the employees and shareholders". Corporate income tax is actually an indirect tax masquerading as a direct one.

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The best tax reform idea

by maxwell edison In reply to U.S. Tax reform ideas

Pass an amendment to the US Constitution repealing the 16th, and then tax consumption, not income.

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How could you guarantee

by AV . In reply to The best tax reform idea

That tax revenues would be enough? If people had no income taxes, it doesn't guarantee that they would spend the extra money in the economy and generate enough revenue to fund the government.

I would love it to be that way, but think it would come up short.

AV

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